The Ensign Group, a publicly traded company that operates post-acute and urgent-care facilities, is selling 2.5 million new shares to pay off debt from its line of credit and cover other expenses.
The Mission Viejo, Calif.-based company said it will use the money raised with the supplementary offering to pay off its revolving credit facility that it has primarily used for acquisitions—a strategy the company expects to continue, according to a news release.
The Ensign Group's existing stock closed at $42.03 a share Wednesday. Late in the day, the company announced the new offering would be priced at $41 a share, which will raise approximately $102.5 million in gross proceeds from the sale.
Wells Fargo Securities will act as the lead underwriter for the offering, and other underwriters will be granted a 30-day option to purchase an additional 375,000 shares of stock.
The Vanguard Group, a major investment management company based in Valley Forge, Pa., bought additional shares of Ensign at the end of 2014, according to a document filed Wednesday with the Securities and Exchange Commission. The company now owns 6.19% of the Ensign Group.
Asset manager BlackRock also increased its Ensign shares at the end of last year and now owns 8.3% of the company, according to an SEC filing last month.
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